Government Relations

Legislative Update

September 14, 2007

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In this issue:

STATE UPDATE

Biennial Budget

Conference Committee

The Conference Committee continues to meet at least once weekly, though no votes have been taken so far.  At each meeting of the Committee, issues specific to UW System have been discussed by one or several members. 

The committee met again on Thursday, September 13th, with discussion by Republicans focused on K-12 funding and shared revenue, and Democrats focusing on technical colleges. Here are links to the Assembly Republican K-12 and Shared Revenue Funding Legislation and the corresponding LFB K-12 Shared Revenue Summary.

Assembly Republicans announced they are planning to meet in legislative session on Tuesday, September 18, 2007 to pass funding provisions related to K-12 and shared revenue funding as separate legislation from the biennial budget.  Democrats countered that the budget should be debated, in its entirety, and as part of conference committee. 

Democrats brought to the table a Wisconsin Technical College System (WTCS) proposal, and Republicans countered with a package of their own.  Finally, the Democrats responded with a second counter proposal.   

Notably, the Republican WTCS Counter Proposal contained the Assembly’s language related to undocumented non-resident tuition remission.  In the final Democratic WTCS Counter, Democrats asked the provision be removed, and held, until full debate occurs on the UW System. 

No votes were taken on any of the proposals offered and countered, however this is the first time any proposals were countered and re-countered.    

It is anticipated that conference committee will meet again today, Friday, September 14th.  Action today will be reported separately. 

Public Comments Related to UW System by State Legislators

More legislators have been willing to voice their support for UW System’s budget, with Wispolitics.com reporting “a slew of letters” from their members, also saying “It’s evident from the letters that the fate of the UW System is weighing heavily on some legislators’ minds.”
 
Wispolitics.com’s Friday, August 31 report further noted how Rep. Sheryl Albers, R-Reedsburg, wrote the committee asking for more funding for UW-Baraboo, and how Rep. Al Ott, R-Forest Junction, also asked for more UW funding.
 
Rep. Ott said about UW System "After hearing from officials from my local System campuses, however, I understand that this increase is not sufficient to continue present programs, let alone develop new educational opportunities for our citizens."
 
Finally, it noted how GOP Sens. Dale Schultz and Carol Roessler requested financial support for building projects at UW campuses in their districts as well. See the letters here Wispolitics Legislative Letters to Conference Committee.

Please see the broad, bi-partisan support articulated by legislators thus far:

New  Sen. Robson Op Ed

New  Rep. Murtha Letter

New  Sen. Lassa Column

New  Rep. Ott Letter

New  Sen. Roessler Letter

Sen. Lassa Letter

Rep. Albers Letter

Rep. Hilgenberg Column

Sen. Schultz Letter

Sen. Olsen Column

Do you have any more comments or correspondence from legislators that we aren’t seeing?  If you know of something that other legislators have posted/published about UW System, please contact Kathy Dickerson at Kdickerson@uwsa.edu.    

State Legislation Update

Legislative Activity

August 28 - The Assembly Colleges and Universities Committee held a public hearing on three bills, AB 281 related to responsibilities of the Educational Approval Board (EAB); AB 439 related to technical college basic adult programs; and AB 469 related to accessible instructional materials for people with disabilities enrolled in the UW or technical college system. UW attended the hearing, but did not testify on the bills.  Originally, AB 389 relating to eliminating the maximum award (Currently $2,250) for recipients of the Academic Excellence Higher Education Scholarship was scheduled to be heard, but was removed from the hearing notice by request of the authors, Sen. Lassa and Rep. Ballweg.   

August 28 - The Assembly Committee on State Affairs held a public hearing on August 28 on AB 386 which would place restrictions on the purchase price of land acquired from nonprofit organization by certain agencies and authorities.  UW System’s David Miller testified for information only.  No further action is expected on the bill in its current form.  UW System will continue to work with the author, Rep. Friske, on suggested changes.  

Upcoming Legislative Activity

September 25 – The Assembly Colleges and Universities Committee has tentatively noticed a “public hearing on the ethics concerns in higher education” (i.e., student loans and financial aid administrators scandal) and the response of higher education officials in Wisconsin.”  It is expected that UW System President Kevin Reilly and other UW System officials will attend and provide testimony.  This hearing was originally noticed for Sep. 11, but was rescheduled.  

Legislation Introduced or Added Since Last Update

Rep. Mursau has introduced AB 440 which creates a loan program for pharmacy students who agree to practice pharmacy in pharmacy professional shortage areas in this state.  View additional sponsors and full text.  On August 15, the Assembly Public Health Committee held a public hearing on the bill, but no action was taken.

SB 265 was introduced by Legislative Council relating to affirmative action practices in state and local government contracting and state and local government hiring, the consideration of race or ethnicity in the University of Wisconsin System, and eligibility requirements for minority teacher loans and minority undergraduate grants awarded by the Higher Educational Aids Board. View additional sponsors and full text.

Please note that UW System legislative bill positions that have been approved by the UW System Board of Regents are posted on the web.  View bill positions.

► WHEG Funding

Assembly Colleges and University Committee Chairman Rep. Steve Nass sent a recent Letter to the state Attorney General, regarding recent news coverage of students who are awaiting word on their financial aid awards.

FEDERAL UPDATE

Budget reconciliation was completed on September 7.  As reported by AASCU, the legislation will provide billions of dollars for student aid programs by cutting subsidies to lenders.  Key provisions include:

Pell Grants -- Provides new funding ($33.7 billion) between FY2008 and FY2017 for the Pell Grant program to fund increases in the maximum Pell Grant award to augment discretionary funding provided annually by the House and Senate appropriations committees.    The U. S. Department of Education (ED) will supplement Pell awards with mandatory funds only for students eligible for Pell awards under the discretionary program. The conference bill provides that the funds mandated for increasing the Pell maximum award would increase the maximum award passed by the appropriations committee by $490 for award years 2008 - 2009 and 2009 - 2010, by $690 for award years 2010 - 2011 and 2011 and 2012, and $1090 for award year 2012 - 2013.  Senator Kennedy's intent is that the Pell Grant grow from $4800 in FY2008 to $5400 in FY2012.  Currently, in FY2007, the maximum Pell award is $4310.  The House appropriations committee has marked up $4700 for FY2008 and the Senate committee $4310.

Teach Grants -- New incentives are created in this bill to encourage good teachers to teach in high-need schools.  The TEACH Grant program will provide scholarships of $4,000/year for high-achieving undergraduate and graduate students who commit to teaching a high-need subject in a high-need school.  

Income-based Repayment --  Establishes an Income-Based Repayment (IBR) program that would allow borrowers in either the FFELP or the Direct Loan program to have their lender or ED restrict their annual payments to 15% of the amount by which their adjusted gross income exceeds 150% of poverty, based on a 10-year repayment plan.  The lender would apply payments first to interest and then to principal.  On subsidized loans, ED will pay any unpaid interest for three years.  Otherwise, unpaid interest on subsidized and unsubsidized loans will be capitalized.  ED will pay or cancel loans after 25 years for borrowers who continue to be eligible for this program or repay under the Income-contingent Repayment program, or borrowers who have been in economic hardship deferment.   This new IBR program would be in addition to the Income-contingent Repayment program in the Direct Loan program. 

Federal Family Education Loan Program Financing -- Reduces federal outlays in this program by $31.8 billion between FY2007 and FY2017 by reducing the yield to profit and non-profit lenders on new Stafford and Consolidation loans.            

Auction -- Requires ED to establish a state-based competitive auction for parent loan origination and disbursement beginning July 1, 2009, with a reservation price of 3-month Commercial Paper plus 1.74% on regular parent loans, and a weighted average on consolidation loans of Commercial Paper plus 1.59%, and no lender origination fees.

Student Interest Rates for New Undergraduate Subsidized Loans -- Lower the student interest rate for new undergraduate subsidized loans beginning in July 2008 from 6.8% to 6%, in July 2009 to 5.6%, in July 2010 to 4.5%, and 3.4% in July 2010.  In July 2012, the interest rate would revert to 6.8%.

Public Service Loan Forgiveness -- Establishes a program for public service, including the military, providing loan forgiveness for borrowers in the Direct Loan program or the Federal Family Education Loan (FFEL) program who choose to repay their loans through the Direct Loan program.  This benefit would be provided after 10 years of public service employment.   FFEL borrowers must consolidate into the Direct Loan program at the beginning of their 10 years of public service employment to receive this benefit.   This program would reduce, not increase, federal costs because of the lower costs to the government of the Direct Loan program.

On Friday, September 14, the House of Representatives passed the Patent Reform Act of 2007 (H.R. 1908).  The final vote on H.R. 1908 was 220-175.  Wisconsin’s representatives played a major role in modifying the legislation sought by the higher education community.  The prior-use modification, approved as part of the manager’s amendment, struck the expansion of prior user rights from the underlying bill and substituted a study. This was important to UW institutions.  Expanding prior user rights encourages private companies to keep patentable inventions as trade secrets as opposed to patents which would be available for use by the university.  With WARF and WiSys, UW System has an infrastructure to patent discovery and public disclosure; whereas expansion of prior user rights would have shifted the impetus to non-patentees.

Please see CRS Report for Congress regarding Federal Research and Development Funding for FY 2008.   

While work on the FY08 appropriations bills continue in Congress, this is a valuable update about research and specific activities of the federal government in the future. For more information, or should you have any questions, please contact Kris Andrews at kandrews@uwsa.edu

UPCOMING EVENTS     

October  
4-5
 UW System Board of Regents Meeting at UW-River Falls

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